International market for flavor cocoa : implications for Grenada

A regression of flavor on bulk export unit values FOB basis revealed that both grades moved in tandem, with flavor values somewhat lagged in price response. Flavor beans commanded an average premium of ca. 8% FOB above bulk cocoa. Considering the traditional lower yields and higher costs for FC, this paper questions whether an 8% premium provides sufficient profit at normal market prices to justify the continued rehabilitation of FC plantings. To exploit opportunities for marketing FC in Grenada, which currently produces about 10% of the world"s FC supplies, members of the Grenada Cocoa Association should minimize bean drying time, strengthen crop forecasting efforts, expand their customer base, and use market intermediaries and specialization. Grenadian producers should produce sufficiently large outturns to support a broad consumer base and drop unit costs through cost reductions and yield improvements to boost farmer incentive. (Author abstract, modified)